Ten Product Candidates in
Cancer Portfolio to be Highlighted at June 2007 ASCO Meeting in 21
Oral Presentations and 49 Abstracts

Transformational Efforts
Beginning to Show Benefits

($ billions, except per-share
amounts)

First Quarter

2007

2006

Revenues

$12.474

$11.747

Reported Net Income

$3.392

$4.111

Reported Diluted EPS

$0.48

$0.56

Adjusted Income1

$4.804

$4.350

Adjusted Diluted
EPS1

[see end of text prior to
tables for footnote]

$0.68

$0.59

NEW YORK--(BUSINESS WIRE)--Pfizer today announced that revenues
for the first quarter of 2007 increased 6 percent, versus the
comparable quarter of 2006. First-quarter 2007 adjusted diluted
EPS1 grew 15 percent. Reported diluted EPS
decreased 14 percent, mainly due to restructuring costs in this
quarter as well as a one-time tax benefit recorded in the first
quarter of 2006.

“We had a good quarter, with
adjusted income1 driven by a number of
factors: growth in our key in-line and new medicines, the favorable
impact of foreign exchange, lower sales rebates, and relatively
flat operating expenses compared to the year-ago period,” said Jeffrey Kindler, chairman and chief
executive officer. “We posted sales
increases for Lipitor and Celebrex, and we were particularly
pleased by the continuing strong performances of Chantix for
smoking cessation, Sutent for advanced kidney cancer and stomach
cancer, and Lyrica for the treatment of diabetic peripheral
neuropathy and post-herpetic neuralgia, two of the most common
types of neuropathic pain, and epilepsy. The low level of expense
growth in the quarter reflected both the early benefits of our
cost-cutting programs and the timing of investments in R&D and
promotional programs this year.

“We are especially encouraged by
the performance our Pfizer colleagues delivered, given that we also
initiated significant organizational and cultural changes this
quarter to enhance our performance and our return to shareholders
in the future. Among other things in the quarter, we completed a
significant reduction and redeployment of the U.S. field force and
began the elimination of large numbers of positions in other parts
of the company. We also announced the intention to close five
manufacturing and five research and development sites. We are
making solid progress on the five priorities we announced in
January 2007, while continuing an intense focus on near-term
results.”

Initiatives are well under way across Pfizer to achieve the
immediate priorities outlined on January 22, 2007, as the first
critical steps along the path of the company’s long-term transformation. In addition to
the efforts to streamline our workforce, we have made important
progress in several other priority areas.

U.S. commercial operations have
been restructured into five individually focused and accountable
areas, each led by a general manager. This new commercial structure
is intended to ensure that managers closest to our customers are
empowered to make key strategic decisions swiftly and with agility
to take advantage of competitive opportunities.

The R&D organization is
being simplified. We are reducing the number of R&D sites,
consolidating our therapeutic areas, and removing layers of
management. We have embarked on a concerted talent-retention and
recruitment strategy for key R&D talent.

The Pfizer Incubator,
established to fund early-stage technology or product-development
projects, opened last month on the Pfizer campus in La Jolla,
California. The Incubator demonstrates Pfizer’s new emphasis on actively engaging with
academic innovators to advance science and the value of our
medicines, while benefiting patients and medical researchers.

Pfizer has completed more than
30 business-development transactions over the past 15 months and is
on track to surpass this number over the next 15 months.

“I am very pleased with our
progress to date on our five immediate priorities,” Mr. Kindler continued. “And with regard to our near-term
performance, apart from the impact of losing U.S. exclusivity for
Norvasc six months earlier than expected and the uncertainty
created by a recent adverse lower court decision regarding Lipitor
patent protection in Canada, Pfizer’s projected overall performance for 2007
and 2008 remains on track.

“In the U.S., an appellate
court decision that was counter to three previous trial court
rulings in Pfizer’s favor led to
the loss of exclusivity for Norvasc in the first quarter of 2007.
As a result of this decision, we now expect that 2007 revenues will
be reduced by $1.2 billion, an impact that we expect to be
partially offset by greater favorability in foreign exchange (at
current rates) than our previous forecast in January 2007. On
balance, the rest of our business remains on track, with a normal
range of variability in the performances of key inline and new
products. At current exchange rates, we now forecast 2007 revenues
of $47 billion to $48 billion, 2007 reported diluted EPS of $1.30
to $1.41, and 2007 adjusted diluted EPS1
of $2.08 to $2.15.

“For 2008, our projected
overall performance also remains on track, subject to the residual
effect of the U.S. Norvasc patent decision and uncertainty
regarding Lipitor’s patent
protection in Canada as a result of a recent unfavorable decision
by a lower court. We have appealed the Canadian decision, which we
believe was wrongly decided. The impact of these
patent-litigation-related events, partially offset by greater
favorability in foreign exchange, combined with the normal range of
variability in the performance of our products result in a forecast
of full-year 2008 revenues of $46.5 billion to $48.5 billion, at
current exchange rates. Our financial guidance for full-year 2008
reported diluted EPS and adjusted diluted EPS1 remains unchanged.

"We're realistic about our challenges, and not every aspect of
our performance met our expectations. For example, while we remain
convinced that Exubera offers substantial benefit for diabetic
patients worldwide, we are disappointed with the product’s performance to date. Our priorities to
improve Pfizer’s performance
remain clear: execute better, control costs, instill accountability
across the company, and make sure we deliver the value our
customers and shareholders expect,” Mr. Kindler concluded. “We are optimistic that the changes we have
initiated are beginning to take hold and that they will position
the company to enhance returns to our shareholders going
forward."

In-Line and New Products Deliver Solid Revenue Growth

Revenue growth of 6 percent to $12.5 billion reflects a solid
performance from both new and in-line products and was achieved in
spite of U.S. revenue reductions for products that recently lost
U.S. exclusivity: Norvasc (down $115 million), Zoloft (down $615
million), and Zithromax (down $112 million). Growth was favorably
impacted by $269 million, or two percentage points, by foreign
exchange. Revenues also benefited from about $145 million in lower
rebates in both our government and non-government contracted
businesses in the U.S., reflecting the continued impact of the
Medicare Modernization Act, changes in product mix, and the impact
of our contracting strategies.

Worldwide sales of Lipitor totaled $3.4 billion for the
first quarter of 2007 and represented growth of 8 percent. Lipitor
sales in the first quarter benefited primarily from price
increases, lower rebates, strong U.S. statin market growth, and the
favorable impact of foreign exchange—all of which more than offset a decline in
U.S. Lipitor prescriptions.

In the U.S., the volume of patients who switched from Lipitor to
generic simvastatin following the entry of multiple generics was
slightly greater than we had predicted, particularly in the
managed-care environment. Toward the end of the quarter, there was
some evidence that new prescriptions in the U.S. for Lipitor may be
stabilizing. Over the next quarter, our focus will be on bringing
Lipitor’s switch rate volume back
to 2006 levels. We have implemented comprehensive plans that we
believe will strengthen Lipitor’s
market position, including physician and patient initiatives aimed
at reducing the rate of switches to generics. In light of the
interplay of prescription trends, market-growth assumptions,
branded and generic competitive dynamics, and payer pressures, we
now project full-year 2007 worldwide revenue performance for
Lipitor within a range of modest growth to a modest decline.

On March 5, 2007, Lipitor was approved by the FDA for five new
indications in patients with clinically evident heart disease,
thereby expanding the U.S. label from primary prevention in
moderate-risk patients to include secondary prevention in high-risk
patients. Lipitor is now the only cholesterol-lowering medicine
approved for the reduction in risk of hospitalization due to heart
failure. These new indications have been incorporated into
promotional materials, including a new direct-to-consumer (DTC)
advertising campaign, and support the incremental benefit and
overall safety of using higher doses of Lipitor.

Emerging real-world data also support the value of Lipitor. In
an analysis of a large U.S. managed-care database that was
presented at the American Heart Association’s 47th Annual Conference on Cardiovascular
Disease Epidemiology and Prevention in March 2007, Lipitor patients
achieved a significant 14-percent reduction in the risk of
cardiovascular events compared with patients taking simvastatin,
even after adjustments for expected differences of Lipitor and
simvastatin LDL lowering based on dose. These findings provide
physicians with additional support as they make treatment decisions
to achieve improved and cost-effective cardiovascular outcomes for
their patients.

Worldwide sales of Celebrex totaled $598 million for the
first quarter of 2007, reflecting 22-percent growth over the first
quarter of 2006. In April 2007, Pfizer launched an innovative
Celebrex television advertising campaign to re-initiate a
productive patient-physician dialogue about treatment options for
arthritis. The unprecedented 2½-minute television advertisement opens by
addressing cardiovascular safety first and clarifies misperceptions
among arthritis sufferers about the risks and benefits of Celebrex
and other prescription non-steroidal anti-inflammatory drugs.
Future growth in demand for Celebrex will depend in part on the
impact of DTC advertising as well as continued successful execution
of the “CV first” strategy by the new and refocused Powers
U.S. field force.

Worldwide sales of Lyrica totaled $395 million for the
first quarter of 2007 and represented growth of 106 percent,
compared to the same period in 2006. Growth continues to be fueled
by strong efficacy as well as high physician and patient
satisfaction in the marketplace. Pfizer expects continued growth
for Lyrica to be driven by market expansion in diabetic peripheral
neuropathy and post-herpetic neuralgia as we continue to roll out
new screening tools to aid physicians in diagnosis, and by the
anticipated launch of a fibromyalgia indication in the U.S. in the
second half of this year, which will increase the potential patient
base in the U.S.

Chantix is performing better than expected and continues
to demonstrate strong uptake, with more than 100,000 new
prescriptions per week in March. An unbranded advertising campaign
introduced earlier this year is working to effectively develop the
market, and branded advertising is planned for the third quarter of
2007. As outlined earlier this year, our strategy for this
innovative medicine is to build a sustainable, medically supported
market over time and to seek to secure reimbursement—initiatives that we believe will drive
future growth. The product also was recently launched in
Canada.

Sutent continues to exceed our revenue expectations, with
$102 million of revenues in the first quarter of 2007. During the
quarter, the FDA granted full approval for Sutent in advanced renal
cell carcinoma (RCC), and the label was revised to include new
first-line RCC data. In the EU, Sutent was granted full marketing
authorization and extension of the indication to first-line
treatment of advanced RCC. We believe that future growth of Sutent
will be fueled by emerging new data in a range of potential new
indications. More than 25 Sutent abstracts have been accepted for
presentation at the American Society of Clinical Oncology (ASCO)
annual meeting in June 2007.

With the disappointing revenue performance of Exubera to
date, Pfizer’s updated forecast
reflects a slower rate of market acceptance in 2007 and 2008 for
this product, given the more extensive market-development
activities we now believe are necessary. However, Pfizer is
applying market experience from the past six months to seek to
accelerate uptake of Exubera in 2007 and beyond with new
field-force efforts—including the
first-quarter 2007 full-scale launch in primary care—educational outreach to physicians and a
consumer advertising campaign. Beginning on April 2, 2007, Exubera
has been supported by the Pratt and Vista cardiovascular field
forces. Diabetes educators are also in the field engaging in
clinical discussions to deliver the practical clinical guidance
needed by physicians to help them understand the benefits of this
innovative insulin-delivery system. These resources are in direct
response to our customers’ need
for increased support in using a novel delivery device. Pfizer
plans to initiate branded DTC advertising mid-summer for Exubera.
We will continue to monitor the performance of Exubera, while we
seek to effectively establish this important product and serve the
millions of diabetics whose blood sugar is still uncontrolled on
current therapy.

Regulatory review of fesoterodine is progressing in the
U.S. and the EU. This product candidate received a positive opinion
from the EU’s Committee for
Medicinal Products for Human Use during the first quarter of 2007.
In the U.S., an approvable action was granted by the FDA in January
2007. Pfizer is working with Schwarz Pharma, our partner, to scale
up manufacturing and define sourcing alternatives. Launch is now
planned for the latter half of 2008 in Europe and early 2009 in the
U.S.

Pfizer Pipeline Highlighted at Medical Meetings

Pfizer has the largest new-product pipeline in its history, with
249 programs currently underway. The most advanced compound in the
pipeline is maraviroc, our CCR5 inhibitor to treat HIV, which is
currently under accelerated review by regulators in both the U.S.
and Europe. An FDA advisory committee meeting to discuss maraviroc
is scheduled for April 24, 2007. Pfizer recently presented pivotal
data on maraviroc at the 14th Conference
on Retroviruses and Opportunistic Infections, one of the
world’s largest HIV/AIDS research
meetings. If approved, maraviroc would be the first of a new oral
class of HIV medicines and could broaden the arsenal of treatments
to combat resistant forms of the human immunodeficiency virus (HIV)
that causes AIDS.

Pfizer also has several promising programs in our oncology
pipeline. Our progress is reflected by 49 abstracts generated from
10 Pfizer oncology programs accepted for presentation at the
43rd Annual Meeting of the American
Society of Clinical Oncology (ASCO) in Chicago in June 2007,
including 31 abstracts across four different compounds in our
angiogenesis portfolio and 21 oral presentations covering eight
different Pfizer medicines.

Data from the RELIEF trial, evaluating the efficacy of Lyrica
for the treatment of pain and other symptoms of fibromyalgia, will
be presented at the annual meeting of the American Academy of
Neurology in May 2007. There are currently no medications approved
by the FDA for fibromyalgia, which is the most common chronic pain
condition in the U.S. We have submitted a supplemental NDA for use
of Lyrica in fibromyalgia.

In the first quarter of 2007, revenue growth of 6 percent was
driven by strong growth of key in-line and new medicines and the
favorable impact of foreign exchange and lower rebates. Cost of
sales as a percentage of revenues in the first quarter of 2007
reflects unfavorable product mix and the impact of lower volume and
foreign exchange, partially offset by the continued implementation
of our Adapting to Scale (AtS) productivity initiatives. The
pre-tax operating expense component of adjusted income1 decreased 1 percent compared to the prior year,
reflecting the continued implementation of our productivity
initiatives and a lower level of investment in promotional and
R&D programs during the first quarter of 2007 than that
expected over the remaining three quarters of the year. Reported
expenses include restructuring costs of $812 million in the first
quarter of 2007, versus $299 million in the first quarter of 2006.
This differential primarily reflects costs associated with the
company’s recent decisions to
rationalize our manufacturing base and R&D site network.

The company updated certain aspects of its financial guidance
for 2007:

Revenues of $47 billion to $48
billion

Cost of sales pre-tax component
of adjusted income1, as a percentage of
revenues, largely unchanged from 2006 at approximately 15 percent
(guidance unchanged)

SI&A pre-tax component of
adjusted income1 down about $500 million
versus 2006 to about $14.9 billion (guidance unchanged)

In March 2007, the Company received an adverse court decision
that resulted in the loss of exclusivity for Norvasc in the U.S.,
six months earlier than anticipated. We estimate that this decision
will result in approximately $1.2 billion in foregone revenues in
2007. This impact is expected to be partially offset by
approximately $450 million in higher-than-anticipated favorability
in foreign exchange this year, reflecting primarily a strengthening
of the euro relative to the dollar since our previous forecast in
January 2007. In addition, our forecasts for Lipitor, Exubera, and
Chantix, among other products, reflect a range of variability
attendant to the underlying dynamics of these product lines. As a
result, at current exchange rates, we now anticipate revenues of
$47 billion to $48 billion this year.

Our guidance with respect to the 2007 cost of sales pre-tax
component of adjusted income1, as a
percentage of revenues, and the 2007 operating expense pre-tax
component of adjusted income1 is unchanged
from our guidance provided on January 22, 2007. We are reducing our
2007 effective tax rate on adjusted income1 from 22.5 percent to 22 percent, reflecting
changes in geographic mix as well as the impact of ongoing
tax-planning strategies. As a result of these revenue and expense
adjustments, at current exchange rates, we now forecast reported
diluted EPS of $1.30 to $1.41 for 2007, reflecting the impact of
the operational changes cited above, implementation costs
associated with our productivity initiatives, and
purchase-accounting charges (including $283 million in
first-quarter 2007 charges for in-process R&D primarily
associated with our acquisitions of BioRexis Pharmaceutical Corp.
and Embrex, Inc.). We now forecast 2007 adjusted diluted
EPS1 of $2.08 to $2.15 and expect to
generate cash flow from operations of $12 billion to $13 billion
this year.

The company also updated certain aspects of its financial
guidance for 2008:

We expect to see a residual adverse impact of about $300 million
in revenues in 2008 resulting from the accelerated loss of
exclusivity this year for Norvasc in the U.S. This impact is
expected to be offset by approximately $450 million in
higher-than-anticipated favorability in foreign exchange in 2008,
reflecting primarily the strengthening of the euro relative to the
dollar since our previous forecast in January 2007. In addition,
patents protecting Lipitor in Canada have been challenged by
various generic companies. One of those companies has been
successful at the lower court level, and we have appealed that
decision, which we believe was wrongly decided. There is a risk
that sales of Lipitor in Canada would be adversely affected by
generic competition, should the Canadian courts or regulatory
authorities allow generic competition in Canada before the
expiration of our Lipitor patents. We remain optimistic about the
approval of a fibromyalgia indication for Lyrica in the U.S. this
year, although the timing is subject to the normal uncertainties
associated with the regulatory review process. Finally, our
forecasts for Lipitor in markets other than Canada, and for Exubera
and Chantix, among other products, exhibit a range of variability,
reflecting the underlying dynamics of these product lines and our
experience in the marketplace this year. As a result, at current
exchange rates, we now expect revenues of $46.5 billion to $48.5
billion in 2008.

We expect a reduction in the total cost pre-tax component of
adjusted income1 of at least $1.5 billion
to $2 billion, compared to 2006, by the end of 2008. We forecast an
effective tax rate on adjusted income1 of
22 percent to 22.5 percent. At current exchange rates, our reported
diluted EPS and adjusted diluted EPS1
forecasts remain unchanged: We continue to forecast 2008
reported diluted EPS of $1.75 to $1.93 and 2008 adjusted diluted
EPS1 of $2.31 to $2.45.

Committed to Total Shareholder Return

“Pfizer is intensely committed
to maximizing total shareholder return through revenue growth as
well as cost management and capital allocation. We are delivering
on all these fronts,” said David
Shedlarz, vice chairman.

“Business development has been
a major focus in recent months in order to aggressively pursue new
sources of revenue. Pfizer has completed more than 30 transactions
that gained access to new product candidates or technologies over
the past 15 months, and we are on track to surpass this number over
the next 15 months. In cost management, Pfizer is actively
implementing productivity improvement initiatives that are expected
to deliver net cost reductions of at least $1.5 billion to $2.0
billion in 2008, notwithstanding cost pressures from inflation and
new investments.

“Pfizer also allocates its
capital effectively to maximize shareholder return, not only
through strong reinvestment in the business but also through strong
dividends and substantial share purchases. The company’s first-quarter 2007 dividend to
shareholders represents the 40th
consecutive year of dividend increases, a 21-percent increase over
the fourth quarter of 2006, and a 53-percent increase over the
fourth quarter of 2005. The dividend yield is now over 4 percent.
We are committed to a substantial dividend for our shareholders.
During the first quarter of 2007, we purchased $2.5 billion of our
stock, and we continue to expect to purchase up to $10 billion of
our stock this year.”

1“Adjusted income” and “adjusted diluted earnings per share
(EPS)” are defined as reported net
income and reported diluted EPS excluding purchase-accounting
adjustments, acquisition-related costs, discontinued operations,
and certain significant items. As described under Adjusted
Income in the Financial Review section of Pfizer’s Form 10-K for the fiscal year ended
December 31, 2006, management uses adjusted income, among other
factors, to set performance goals and to measure the performance of
the overall company. We believe that investors’ understanding of our performance is
enhanced by disclosing this measure. Reconciliations of
first-quarter 2007 and 2006, and forecasted full-year 2007
(revised) and 2008, adjusted income and adjusted diluted EPS to
reported net income and reported diluted EPS are provided in the
materials accompanying this report. The adjusted income and
adjusted diluted EPS measures are not, and should not be viewed as,
substitutes for U.S. GAAP net income and diluted EPS.

PFIZER INC AND SUBSIDIARY
COMPANIES

CONSOLIDATED STATEMENTS OF
INCOME

(UNAUDITED)

(millions of dollars, except per
common share data)

First Quarter

% Incr.
/
(Decr.)

2007

2006

Revenues

$

12,474

$

11,747

6

Costs and expenses:

Cost of sales (a)

1,887

1,671

13

Selling, informational and administrative
expenses (a)

3,361

3,395

(1)

Research and development expenses (a)

1,665

1,543

8

Amortization of intangible assets

815

825

(1)

Acquisition-related in-process research and
development charges

283

-

*

Restructuring charges and acquisition-related
costs

812

299

172

Other (income)/deductions--net

(402)

(256)

56

Income from continuing operations
before provision for taxes on income and minority interests

4,053

4,270

(5)

Provision for taxes on income

689

262

163

Minority interests

3

2

28

Income from continuing
operations

3,361

4,006

(16)

Discontinued operations:

Income from discontinued operations--net of
tax

-

102

(100)

Gains/(loss) on sales of discontinued
operations--net of tax

31

3

933

Discontinued operations--net of
tax

31

105

(70)

Net income

$

3,392

$

4,111

(18)

Earnings per common share -
Basic:

Income from continuing operations

$

0.48

$

0.55

(13)

Discontinued operations--net of tax

-

0.01

*

Net income

$

0.48

$

0.56

(14)

Earnings per common share -
Diluted:

Income from continuing operations

$

0.48

$

0.55

(13)

Discontinued operations--net of tax

-

0.01

*

Net income

$

0.48

$

0.56

(14)

Weighted-average shares used to
calculate earnings per common share:

Basic

7,051

7,314

Diluted

7,075

7,348

(a)

Exclusive of amortization of intangible
assets, except as discussed in footnote 4 below.

* Calculation not meaningful.

Certain amounts and percentages
may reflect rounding adjustments.

1.

The above financial statements present the
three-month periods ended April 1, 2007 and April 2, 2006.
Subsidiaries operating outside the United States are included for
the three-month periods ended February 25, 2007, and February 26,
2006.

2.

The financial results for the three-month
period ended April 1, 2007 are not necessarily indicative of the
results which ultimately might be achieved for the current
year.

3.

As required, the estimated value of
Acquisition-related in-process research and development
charges (IPR&D) is expensed at acquisition date. In the
first quarter of 2007, we expensed $283 million of IPR&D,
primarily related to our acquisitions of BioRexis Pharmaceutical
Corp. and Embrex, Inc.

4.

Amortization expense related to acquired
intangible assets that contribute to our ability to sell,
manufacture, research, market and distribute our products are
included in Amortization of intangible assets as they
benefit multiple business functions. Amortization expense related
to acquired intangible assets that are associated with a single
function are included in Cost of sales, Selling,informational and administrative expenses or Research and
development expenses, as appropriate.

5.

Discontinued operations--net of tax is
primarily related to our former Consumer Healthcare business, sold
in December 2006 for approximately $16.6 billion.

6.

Provision for taxes on income in the
first quarter of 2006 includes one time tax benefits associated
with favorable tax legislation and the resolution of certain tax
positions.

PFIZER INC AND SUBSIDIARY
COMPANIES

RECONCILIATION FROM REPORTED NET
INCOME AND REPORTED DILUTED EARNINGS PER SHARE

TO ADJUSTED INCOME AND ADJUSTED
DILUTED EARNINGS PER SHARE

(UNAUDITED)

(millions of dollars, except per
common share data)

First Quarter

% Incr.
/
(Decr.)

2007

2006

Reported net income

$

3,392

$

4,111

(18)

Purchase accounting
adjustments--net of tax

847

581

46

Acquisition-related costs--net of
tax

13

3

333

Discontinued operations--net of
tax

(31)

(105)

(70)

Certain significant items--net of
tax

583

(240)

*

Adjusted income

$

4,804

$

4,350

10

Reported diluted earnings per
common share

$

0.48

$

0.56

(14)

Purchase accounting
adjustments--net of tax

0.12

0.07

71

Acquisition-related costs--net of
tax

-

-

-

Discontinued operations--net of
tax

-

(0.01)

*

Certain significant items--net of
tax

0.08

(0.03)

*

Adjusted diluted earnings per
common share

$

0.68

$

0.59

15

* Calculation not
meaningful.

Certain amounts and percentages
may reflect rounding adjustments.

1.

The above reconciliation presents
the three-month periods ended April 1, 2007, and April 2, 2006.
Subsidiaries operating outside the United States are included for
the three-month periods ended February 25, 2007, and February 26,
2006.